The Effect of the Lack of an Ordoliberal Strong State on the Emergence and Dynamics of the Resource Curse Phenomenon: Selected Countries of the MENA Region

Document Type : Original Article

Authors

1 Yasouj University

2 Faculty of economics

10.48308/jem.2024.233861.1877

Abstract

Resource Curse is one of the most challenging economic issues that have been studied in many researchs in this discipline. However, the researches conducted in this field suffer from three shortcomings: First, they do not provide a specific criterion to prove the emergence of resource curse. Second, there is no any consensus on the what is the effect of natural resource revenues. Finally, the third is that the political economy's theoretical foundations that can support the results of quantitative estimates in this field have not been used much. The current research has tried to solve these shortcomings by using the idea of a strong state by German neoliberals (ordoliberalism) as well as two methods of stochastic frontier analysis (SFA) and the quantile model. Using the method of stochastic frontier analysis, the existence of resource curse, and using the quantile method, its dynamics can be shown. The results of the research show that natural resource revenues cause changes in the two basic functions of a strong state, namely "effectiveness" and "regulation": these revenues reduce the effectiveness of the government and weaken the quality of government regulation. As a result, the "Rent leverage" has prevented the realization of the strong state and the formation and continuation of a weak government in countries with natural resource revenues.

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Journal of Economics and Modelling
Volume 14, Issue 2 - Serial Number 54
September 2023
Pages 103-134

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